To The Moon

News and my thoughts from the last week (25 Dec 2023) Image $SPX is expected to report Y/Y earnings growth of 2.4% for Q4 2023, which is below the estimate of 8.1% earnings growth on September 30. - FactSet Image 72 $SPX companies have issued negative EPS guidance for Q4 2023, which is above the 5-year average of 57 and above the 10-year average of 62. indicators like negative temporary employment growth and negative trucking industry job growth point to a recession. - Business Insider FedEx shares fell close to 10% after the global delivery firm cut its outlook for the year as its largest Express business saw the demand drop from the US Postal Service - Reuters Supply chain can be seen as a lagging indicator. Let's be watchful. The market can be bullish but the fundamentals are of concern

$Palantir Technologies Inc.(PLTR)$ Title: A Day in the Limelight: A Glimpse into the Life of a Stock Market Celebrity In the dynamic world of finance, the allure of being a stock market celebrity is undeniable. Imagine a day in the shoes of those admired figures – the company executives, fund managers, Federal Reserve officials, or government personnel privy to insider information. What would one do with such influence and power in the bustling realm of the stock market? Firstly, I would leverage the day to gain insights into the intricate workings of the financial world. Being a company executive, I could make strategic decisions that impact stock prices, fostering an understanding of the delicate balance between c

After the Federal Reserve announced dovish policies last week, homebuilders' exchange-traded funds (ETFs) saw a strong rally, breaking historical records.The two largest homebuilder ETFs, SPDR S & P Homebuilders ETF (XHB) and iShares US Home Construction ETF (ITB), rose more than 8% and 9% respectively from Wednesday to Friday last week. As of now, these two ETFs have risen by 58% and 67% respectively this year, and their trading prices have also reached historic highs. This strong growth indicates investors' confidence in these companies and the entire residential construction industry.Market Drivers: The main driving factor is the shortage of inventory in the resale market, which stimulates the growth of demand for new homes. The recent reduction in mortgage rates and the signal of t

Investing in short-term bonds involves holding until maturity to earn interest, while long-term bonds, influenced by interest rate changes, offer opportunities for profit through buying low and selling high.With the unprecedented rapid rate hikes by the Federal Reserve and ongoing inflation threats, the financial markets are undergoing systemic changes. This shift may persist for an extended period, significantly boosting bond yields, making them more appealing compared to stocks. The upcoming year 2024 is dubbed by many as the "year of the bond resurgence," and if you haven't yet delved into bond investments, it might be challenging to secure sustained and substantial returns.To facilitate understanding, let's briefly introduce basic knowledge and strategies for bond investment, especiall

Year-end rally that catapulted the Dow Jones Industrial Average and Nasdaq 100 to record highs earlier this week is likely to extend into next week. This is because the stock market has a strong tendency to rise during: The last 5 trading days of the year. The first two trading days of the new year. This is commonly referred to as the Santa Claus rally. The phenomenon was discovered in 1972 by Yale Hirsch, creator of the "Stock Trader's Almanac". When is Santa Claus rally in 2023 ? This year, the Santa Claus trading window begins on 22 Dec 2023 and ends on 03 Jan 2024. What history says about Santa rally? According to historical data dating back to 1950, the $S&P 500(.SPX)$: Posted an average return of 1.3%. Is positive 79% of the time during